Tuesday, June 21, 2005

Lawsuits Filed over Formula One Race

Well, you knew this was coming. Three fans who were at the F1 race at the Indianapolis Motor Speedway on Sunday for the debacle that was the US Grand Prix have filed lawsuits claiming that F1, the sport's governing body, Michelin, the teams that withdrew from the race and Indianapolis Motor Speedway (IMS) “responsible for not producing the type of event advertised." Expect some refunds to be issued and for this to all go away. Just like Formula One, which probably won't be back in the US anytime soon (although you never know). (Cavin, "F-1 roar drops a notch, Indy Star, 06/21/05).

Hat Tip: Sports Business Daily (subscription required)

The Legality of the New CBA

Below I discuss the new NBA collective bargaining agreement (6/21), including thoughts that setting the age limit at 19 seems to be a bad idea for both parties.

But regardless of whether the age limit in the CBA is a good idea, I think there is no question that it is legal. The union and the league have freely reached this deal in a bargained-for agreement, which should satisfy the labor exemption to the antitrust laws (if that exemption means anything). Yes, it is arbitrary, but no more so than limiting the teams' rosters to twelve active players.

I am certain that Mike will argue the other side, but it seems that any legal challenge has a tough mountain to climb.

NBA and Players Reach New Agreement

I return from a lengthy absence with news that you have no doubt heard. The NBA and the Players Union have reached an agreement (in principle) for a new collective bargaining agreement. The new agreement, which is outlined on the NBA website, raises the salary cap, increases the percentage of basketball revenue guaranteed to the players and decreases the maximum contract length from seven years to six. It also increases the number of random drug tests, as well as the penalty, and gives teams the right to assign players with less than two years of experience to the NBA Development League. It will be interesting to see how much the teams take advantage of this new power, and more importantly, how the players respond.

One of the biggest items, of course, is that the league has also raised the age limit for draft eligibility from 18 to 19. I have been on record as being in favor of the age limit, while Mike has become famous (HBO anyone?) for extolling its downsides. But, I see this agreement as a potential loss for both sides. Yes, it will be beneficial to have (slightly) more older and (arguably) more mature players in the league, but how much difference will one year really make?

In my mind, the purpose of an age limit is to protect the league's product. The league needs to ensure that its players learn the fundamentals, but more importantly, how to be adults, while in college and before being handed millions of dollars. With this agreement, the NBA has ensured the players will be a little older, but will they be any wiser? Unlike an age limit of 20, or one similar to the NFL where the player must be three years removed from high school, most star basketball players will only have to wait out one year before they can enter the draft. As ESPN points out, players may try and go to Europe or just sit out a year rather than risk injury in college.

College basketball is also harmed by this deal. The number of "one and done" players will only increase, as 18 year-olds enter school only to prove their skills for the next year's draft. While it may be fun to see some of them in school, recruiting will become more difficult as coaches have to choose between a one-year superstar or a four-year solid player. Players certainly will not have the chance to mature, both on the court and off it, through several years in a college setting.

There is no question the NBA is suffering. When the ratings for your championship series are being subsumed by reality television featuring dancing B-level stars, something is amiss. (Forbes, 06/14/05). Robert Horry's (ahem, fundamentals) great 4th quarter may have rescued some audience, but it will be interesting to see if the new CBA can help steer the league back towards mass appeal.

Update: Reader Krikor correctly points out that the agreement not only has a 19 year-old age limit, but also a requirement that US players be one year removed from high school. Thus, players could not merely "repeat" a grade just to graduate at 19, as I had suggested before.

Thursday, June 16, 2005

Proposed New Yankees Stadium: Good for Taxpayers?

The New York Yankees have proposed construction of a new, $800 million ballpark that is privately financed. Although $200 million in city and state funds would be used for infrastructure and parkland, sports economist Andrew Zimbalist of Smith College notes, "any way you look at it, this is a pretty generous deal for the city." Financing for the new Yankees stadium would be certainly different than that for the publicly-financed project recently proposed by the Marlins (and as we recently discussed).

Saturday, June 11, 2005

Assumption College Reinstates Track and Field Team After Allegation of Sex Discrimination

Assumption College of Worcester, Massachusetts has agreed to reinstate both its men’s and women’s indoor and outdoor track and field teams in order to avoid a sex discrimination lawsuit threatened by the Trial Lawyers for Public Justice ("TLPJ"). In a demand letter dated May 10, 2005, the TLPJ charged that the school’s decision to eliminate the women’s teams violated Title IX of the Education Amendments of 1972, the federal law that prohibits sex discrimination by educational institutions receiving federal funds. The school has now confirmed that it will reinstate the teams.

In case you are unfamiliar with the TLPJ, it is a national public interest law firm that has successfully sued several prominent educational institutions--including Brown University, Indiana University, and Temple University--for discriminating against women in athletics. The TLPJ is also engaged in litigation concerning consumer rights, environmental protection, and civil rights, among other areas of the law.

Friday, June 10, 2005

My Interview on HBO

First off, I apologize for the lack of posts. We've been in a busy patch, but we'll now be posting with far greater regularity.

Second, I hope you had or will have a chance to see my interview on Bob Costas' HBO Show "Costas Now." The show first aired last night at 9:00 P.M. EST, and will air again throughout the week (see schedule below). Armen Keteyian interviewed me one-on-one, and the questioning pertained to the NBA's efforts to institute an age floor for entry into the league. Armen separately interviewed high school phenom Greg Oden (a high school junior who is so highly-regarded that if he were eligible for this year's draft, he would be the #1 pick, hands down), his mother, a high school basketball coach, David Stern, and Billy Hunter. It is a great show, as it dismantles many of the popular myths concerning professional basketball players who happen to be teenagers (e.g., "they're immature"; "they tend to struggle" -- the facts, rather than rhetorically-appealing generalities, prove just the opposite). I hope you get a chance to see it (all times Eastern Standard Time):

Fri 6/10 .... 9:00 PM....... HBO
Sat 6/11 ... 1:25 AM........HBO
Sat 6/11 ... 10:00 AM .... HBO
Sat 6/11 .... 7:00 PM.......HBO2
Sun 6/12 ... 11:00 AM.....HBO
Sun 6/12 ... 11:30 PM.....HBO2
Mon 6/13 ... 3:30 PM......HBO
Tue 6/14 .... 12:30 AM....HBO
Wed 6/15 .. 10:45 PM.....HBO2
Thu 6/16 .... 9:30 AM......HBO
Thu 6/16 .... 7:30 PM......HBO

Also, many thanks to Bruce Allen of the fantastic Boston Sports Media Watch for his great post on the interview and Sports Law Blog. If you are a Boston sports fan, or just a fan of seeing someone expose the Sports MSN for its inconsistencies, definitely check out BSMW, which, as we discussed in February, broke the story of how a Patriots' beat writer was badly plagarizing Peter King of Sports Illustrated and HBO.

Wednesday, June 1, 2005

The Relationship Between Age and Performance Among Baseball General Managers

We often discuss age-related issues on Sports Law Blog. Namely, we debate whether age floors are both desirable and legal for the NBA and NFL Drafts. As you probably know, Greg and I disagree on this topic, and if you are interested in my published analysis, please take a look at my law review article "Illegal Defense: The Irrational Economics of Banning High School Players from the NBA Draft, 3 Virginia Sports and Entertainment Law Journal 113 (2004)."

But what about age and performance as a general manager -- does experience and seasoning matter? David Gassko of the Hardball Times just released an interesting study on the performance of general managers in baseball. Using an assortment of criteria, including available resources, difference in record before and after the August 1 trading deadline, and home/away splits (which may reveal how effective the general manager is at assembling players for his team's ballpark), Gassko compiles a ranking.

Who is the best general manger in baseball over the last two years according to Gassko? Why, it's none other than 31-year old Theo Epstein of the Boston Red Sox -- the youngest general manager in baseball. Epstein became the G.M. of the Red Sox at age 29, and since that time, has done something that no other Red Sox G.M. since 1918 could do: win a World Series (with some help from inherited players that were acquired by his predecessor, Dan Duquette).

Obviously, the fact that Epstein is so young does not prove that younger general managers are better. But it does suggest that one need not be old in order to excel as a general manager in professional sports -- and as I contend, the same can be said of players in professional sports, too.